Pender Awning manufactures awnings and uses a standard cost system. The company allocates overhead based on the number of direct labor hours. The following are the company's cost and standards data: (Click the icon to view the standards.) e e Standard Price and Volume Standards: Direct materials 17.0 yards per awning at $12.00 per yard Direct labor 4.0 hours per awning at $13.00 per hour Variable MOH standard rate $8.00 per direct labor hour Predetermined fixed MOH standard rate $10.00 per direct labor hour Total budgeted fixed MOH cost $81,500 - X - on t Actual cost and operating data from the most recent month are as follows: (Click the icon to view the actual results.) All manufacturing overhead is allocated on the basis of direct labor hours. Read the requirements. Actual Results Purchased 39,270 yards at a total cost of $455,532 Used 35,000 yards in producing 2,100 awnings Actual direct labor cost of $106,110 for a total of 8,100 hours Actual variable MOH $67,230 Actual fixed MOH $86,500 x Requirements 1. Calculate the standard cost of one awning. 2. Calculate the following variances: a. The direct material variances. b. The direct labor variances. c. The variable manufacturing overhead variances. d. The fixed manufacturing overhead variances. 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Are any of the variances likely to be interrelated? I X Requirement 3. Explain what each of the variances you calculated means and give at least one possible explanation for each of those variances. Direct materials: Variance Possible explanation Meaning DM price the actual price paid for material was less than the standard the actual price paid for material was less than the standard purchasing higher quality materials purchasing higher quality materials DM quantity Direct Labor: Possible explanation Variance Meaning DL rate the actual labor rate paid for was less than the standard DL efficiency Variable manufacturing overhead: Variance Meaning VOH rate VOH efficiency Fixed manufacturing overhead: Variance Meaning FOH budget FOH volume Are any of the variances likely to be interrelated? Possible explanation Possible explanation Are any of the variances likely to be interrelated? The variance is likely to be related to the variance. It is likely that Pender Awning variance. It is likely that Pender Awning This may have resulted in